Functions

The prime job of Excise Department is to regulate
import and supply of liquor, intoxicants and narcotics (for medicinal
purposes), the statutory powers for which are discharged under the
Punjab Excise Act, 1914 and Medicinal and Toilet Preparation Act 1955.
The Department grants L-1 Licences to Distilleries/Bottling Plants
for the wholesale supply of IMFL and Beer in Delhi, while retail liquor
trade in Delhi is mainly in the hands of the Government Undertakings for
which a separate licence in form L-2 is granted. Apart from this some
private entrepreneurs have also been granted licenses in Form L-52 for
retail trade of IMFL & Beer. Besides, Licences for the consumption of
liquor 'on-site' premises like hotels, restaurants and clubs are also
granted by this Department. The Department invites tender on yearly
basis for wholesale supply of country liquor from the
distilleries/bottling plants and licence in Form L-9 are issued to
successful tenderer. The Department also fixes the price of Country
Liquor and regulates it's supply for retail sale through DTTDC/DCCWS
Ltd./DSCSC Ltd/DSIIDC for which L-10 license are granted. Licences are
also given for holding/hosting private parties as well as for storage
for personal consumption beyond the permissible limits.

At present four corporations namely DTTDC, DSCSC, DSIIDC and
DCCWS are engaged in the retail trade of liquor, with a total 0
shops for IMFL & Beer and 0 shops for country liquor.
The private entrepreneurs are also holding 0 shops for
retail sale of IMFL & Beer all over Delhi.The Department has also
granted 2 L-53 licence for retail sale of Beer & Mixed Alcoholic
Beverages through Departmental Stores for "off-site" consumption in the
Excise Year

The department also regulates consumption/distribution/issue of
Rectified Spirit, Denatured Spirit, Life Saving Drugs like Morphine,
Pathedine, Medicinal Opium and Hemp to various Government Hospitals,
Private Nursing Homes, Doctors, etc. Sale of Denatured Spirit and
Rectified Spirit in wholesale or retail without a valid licence is an
offence in Delhi. Possession of Spirit and Narcotic Drugs without a
licence is also a cognizable offence.

IMFL Branch/Licences of Liquor

The IMFL branch issues L-1 licences to
Distilleries/ Bottling plants for supply of liquor to the retail
outlets, licensed hotels, restaurants and clubs. The applications for
the grant/renewal of L-1 licences are invited through a public notice.
After the receipt of the applications, these are scrutinized. The
applications which are complete in all respects and fulfil all the
requirements are taken into consideration for the grant of L-1 licence
by the Competent Authority. Cases are processed according to the Terms
and Conditions for the grant of licences. Once the L-1 licence is
granted, licence fee is to be deposited. The L-1 licence is further
processed for the approval of the brands as well as the price. Fixation
of price is done by Excise Commissioner. Price structures are issued
after the payment of brand fee and brand registration fee. Payment of
brand fee is on pro-rata basis.

All the L-1 licencees are required to
maintain Bonded Warehouses which are supervised by the Excise
Inspectors.

Import Permits : The Import Permits are
issued to the L-1 licencees after payment of import fee. The
concerned Excise authority of the state where the distillery is located
issues export permits on the basis of the Import Permits to take the
liquor out of the state without payment of Excise duty. The Excise
Inspector posted at the Bonded Warehouse after scrutinizing all the
documents allows the stock for in-bonding.

Transport Permits : Transport permit
is a document which authorises L-1 licencees for taking out the
specific quantity of liquor mentioned in Transport Permit for supply
to a specified destination. Transport Permits are issued only after
the deposition of requisite Excise Duty/Revenue by the Licencee. On
receipt of the Transport Permits, the Bonded warehouse Excise
Inspector allows the stock for transporting it to various retail
outlets, clubs, hotels/restaurants.

Country Liquor Branch

Tenders are invited for supply of
expected required quantity of country liquor from distilleries/bottling
plants in accordance with the terms and conditions as approved by the
Government on yearly basis. For the year 2008-2009 the expected required
quantity is fixed for 500 lakh Bulk Litre with the variation upto
25% plus or minus. Tenderers are asked to submit capacity and rates for
delivering the liquor. They are allotted quota (in terms of percentage)
to be supplied depending on their capacity and competitiveness of rates.
After finalizing the tender, the L-9 licences are granted to more than
one tenderer to supply country liquor in Delhi. The percentage of supply
is fixed in case of every licensee by a committee appointed by the
Government. Every licensee is also granted a licence CLW-1 for
Bonded Ware house to store country liquor.

Based on the consumption of country
liquor a monthly order is placed by the Excise Department on each of the
licensees in the fixed ratio by the 20th of every month for the supplies
of next month.

When the analytical report is
received from the Excise Control Laboratory and stock is found
potable, it is issued to the retail L-10 vends run by DTTDC,
DSIIDC, DSCSC and DCCWS for sale to the consumer at a fixed price in
Delhi. There are 0 93 vends of different
corporations, for the sale of country liquor. Excise Department
collects Excise revenue from the L-10 licensees well in advance of the
supplies. Cheaper IMFL and Beer are also sold from certain Country
Liquor retail vends, for which L-2 (Spl) license is granted.

Where the stock is not found potable,
it is destroyed in the presence of a committee formed by the
Commissioner of Excise.

Tenders/bids of the following applicant Companies have been accepted by
the Government of NCT of Delhi for
the year 2008-09 for the wholesale supply of country liquor in the
ratio of 4:4:2 F O R to retail sale vends at the following rates :-

Name of the licensee

Period

Weighted Average
Price per case (Quarts/Pints/Nips) - in Rs.

M/s Queen
Distilleries & Bottlers (P) Ltd.(23%)

Brand-Shoukeen

01-04-2008 to
31-03-2009

154.21

M/s Haryana Organics.
(A Division of Globus Agronics Ltd.) (22%)

Brand-Kinnu

01-04-2008 to
31-03-2009

154.21

M/s Frost Falcon
Distt. Ltd.(16%)

Brand-Murthal No.1

01-04-2008 to
31-03-2009

154.21

M/s Maurya Distt. &
Bottlers (P) Ltd. (12%)

Brand-Hulchal

01-04-2008 to
31-03-2009

154.21

M/s Rana Sugars Ltd.(12%)

Brand- Metro

01-04-2008 to
31-03-2009

154.21

M/s Ranger Breweries Ltd (8%)

Brand- Lal Qila

01-04-2008 to
31-03-2009

154.21

M/s A.B. Sugars
Ltd.(7%)

Brand- Litchi No.1

01-04-2008 to
31-03-2009

154.21

The price structure for the year 2008-09 on the
weighted average price of Rs.154.21 in respect of the
above mentioned Licensees is given below:-

Components

Quarts

Pints

Nips

Wholesale Price

12.850

6.425

3.084

Special Duty

7.500

3.750

1.800

Excise Revenue

20.317

10.158

5.709

Retail Margin

1.000

0.500

0.240

Sales Tax

8.333

4.167

2.167

MRP

50.000

25.000

13.000

The above price
structure shall be applicable from the date of commencement of the
supply
by the above said licensees for the year 2008-09.

The wholesale L-9 licensee will charge VAT, as applicable, on the
wholesale price from the Corporations and deposit with the VAT Deptt.
The Corporations will pay VAT on sale of quarts/pints/nips as mentioned
against each in the above retail sale price structure and claim input
credit for VAT paid to the wholesalers.

Import permits are issued to the L-1 licensees on demand which is duly
recommended by the
inspector posted at Bonded Ware House. For issue of these Import permits, It is ensured that
Excise
revenue in form of Import duty i.e. Rs. 5/-per Bulk litre for
regular
brands ( above Rs. 90/- per quart) and Rs. 1.25/- per bulk
litre for
cheaper brands (Rs. 90/- per quart) as applicable in respect
of each
brands have been realized as per the quantity for which the
import
permit is to be issued.

&nbsp
Transport Permits are prepared as per the order placed
by the retailers toL-1
licensees. Such orders are received from the concerned retailers in
the forenoon while the Transport Permits are issued by the
evening of
the same day.Before issuing
these permits, it is ensured that Excise revenue in form of
special
duty, assessment fee and vend fee as applicable in respect of
individual brands has been releasedas per the quantity of IMFL proposed to be released
There are 0 L-1 licensees for the year who
are
authorisedto
supply
liquor/beer to
retailers.Separate transport permits are prepared for each retailers
vend wise andL-1 licensee
wise.

Excise Control
Laboratory

Excise department sends
the samples of IMFL, country liquor, rectified spirit,
denatured spirit and other types of samples
containing alcohol to the Excise control laboratory. The
detection of methyl alcohol and other harmful ingredients
in different potable and non-potable spirits is of great
importance to avoid liquor related mishappenings in N.C.T.
of Delhi and reporting of the same is immediately
required by the Excise Department before releasing the
consignment for sale. In case of non potable spirits various
standards are followed. In country liquor samples, methyl
alcohol test is conducted alongwith the presence/absence
of sediments and foreign matter. Detailed analysis of
country liquor samples is done batch-wise. In
case of IMFL samples, essential tests as well as detailed
analysis is performed as per the requirements.

The samples seized by police are also received by the Excise department for analysis .Ethyl alcohol, % proof spirit, alcohol v/v, total acids,
residue on evaporation, esters, furfural, fusel oil,
copper, methyl alcohol, aldehyde, miscibility,
alkalinity, colour and other type of tests are conducted
depending upon the type of the sample and requirements.

Vigilance branch deals with
complaints/disciplinary cases of misconduct, moral turpitude &
corruption against any public servant of this department.

Medicinal and Toiletry Preparations

M&TP branch performs
the functions of grant and renewal of various licences
for wholesale and retail sale of Rectified Spirit, Denatured Spirit and manufacture and sale of medicines and toilet
preparations containing alcohol and narcotics viz.,
opium, morphine, pathedine and Indian hemp etc., Certain
permits for the import, export and transport of M&TP
containing alcohol and narcotics are also dealt with, by
the M&TP branch. The grant / renewal of various
M&TP licences and permits is governed by various Rules and Acts framed.
Various licenses granted by M&TP branch are as under:-

6

For Rectified spirit (self consumption or
for reseach purpose to institutions and manufacturers of
medicines)

8

F-21

Issued to the hospitals, schoolds, painters
and Doctors for self consumption of Denatured spirit.

9

L-11

License to retailers for denatured sprit

10

L-15

Rectified spirits issued to retailers for
sale in open market

11

F-34

Issued to Doctors, schools, painters and
households (polishing) one time 5 litres limit

12

DD-5

Issued to Doctors for self consumption of
morphine and pathedine injection

13

DD-10

Issued to wholesale medicines containing
narcotics

14

DD-11

Issued to chemists for possession and sale
of morphine and pethadine injection

15

Authorization permit

Issue to hospital and Nursing Homes

16

Opium Cards

Issue to addicts of opium

A new notification for dealing in the life saving drugs called as
Morphine has been notified by the Government of NCT of Delhi by which
the control on the transactions of the Morphine has been liberalised.

A concept of computarized single window system has also been
introduced for collection of all types of duties and taxes to improve the convenience to the clients of the
department as well as for immediate and error free preparations of
financial records.

Computerisation

The Commissionerate is
committed towards consumer convenience and revenue
mobilisation through Computerization. The Excise,
Entertainment and Luxury Tax Commissionerate of NCT of
Delhi has two major objectives :

* To enforce and
regulate the liquor trade in Delhi without promoting it.

* To mobilize
revenue generation under the 3 heads of taxation that
it administers. The department has realised that the
increasing workload under the manual system affects
efficiency and also hampers department's revenue
collection capacity. Hence the remedy lies in
extremely smooth operating infrastructures. and
effective communication systems. This requires an
integrated information technology network with an
inbuilt facility to collect revenue electronically
from liquor vending, corporations, hotels, cinemas,
liquor shops and it will be connected at one end with
the Commissionerate and other with participatory
banks.The major benefits expected to accrue from
the system would be

* Reduction in
smuggling and
brand pushing of liquor which would help in better
revenue mobilisation.

* Automation of the
issue of Transport Permits, import permits, No
Objection Certificates will obviate the necessity of
people coming to department.

* Generation of
timely, intelligent reports and comparisons will help
managerial control, inventory management, improve
efficiency and enable revenue record reconciliation
on daily basis. Also bringing departments float to
zero simultaneously. This will also help flattening
of tax cycle.

* Ease of tax rates
or regulatory changes being put in force immediately
and also providing transparency to department and its
business with it's clients.

* Control data e.g.
occupancy rates for hotels, ordering patterns for
corporation and bookings for entertainment can be
monitored effectively.

The corporations dealing
with liquor will see savings in cost of transfer of
funds, reduction of floats, better stock management
improving revenues and less time spent in chasing paper
The Corporation shops will see savings in space and
reduction of overstocking/stockout situations. They will
be able to serve customers with speed and with brand of
choice alongwith accuracy in billing and payment
resulting in enhanced satisfaction. Similar benefits will
also accrue to bonded warehouses.

As regards hotels and
entertainment entities with respect to Luxury Tax and
Entertainment Tax the system in course of time will build
value for them primarily by increasing convenience and
reducing cost of money transfer, possibly doing away with
manual filing of periodic returns and effective
reconciliation, thus reducing accounting load.

DETAILS OF MAJOR INITIATIVES UNDERTAKEN BY THE
EXCISE DEPARTMENT FOR IMPROVING SERVICE DELIVERY SYSTEM

The Department is committed to automate
various day today activities for the benefit of various types of licencees,
cable operators, hoteliers etc. The automation of tasks started by this
Department is as under
• Online Filing of Luxury Tax Returns (Monthly & Quarterly),
• Printing of Transport Permits of licencees online through Departmental
Website,
• Dynamic Updation & enhancement in the Departmental Website,
• Making available downloadable application forms & dynamic Status of All
Applications Received by the Department on the website as per CVC
Guidelines,
• Acceptance of all types (Corporations, Hotels, Clubs, Restaurants, L52,
L53) of Purchase Requests Online
• Availability of Information to the users regarding stock, EVC, Price
list etc. through Touch Screen Kiosk installed at the reception of the
Department.
• Availability of latest Revenue Status online through Departmental
Website.